MicroStrategy’s Price Chart: A Comedy of Errors or a Bullish Ballet? 🐂💃

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What to know:

  • It appears that a bullish double bottom pattern is making its grand entrance on MicroStrategy’s price chart, suggesting a potential shift to a bullish trend. 🎉
  • The price action seems to be the doppelgänger of bitcoin‘s double-top pattern from earlier this year. Talk about a plot twist! 😲
  • Both double bottoms and double tops are known for their low failure rates, much like my attempts at cooking. 🍳

In a delightful turn of events, a bullish technical analysis pattern is emerging on the price chart of MicroStrategy (MSTR), the proud holder of bitcoin (BTC). This is in stark contrast to the recent market swoon that had everyone clutching their pearls.

The MicroStrategy pattern, affectionately known as a double bottom, consists of two consecutive troughs at roughly the same price. This is said to reflect downtrend exhaustion, much like my enthusiasm for jogging after a week of indulgence. A trendline, or as the cool kids call it, a neckline, is drawn through the high point between these troughs. A move beyond this trendline is akin to a dramatic exit from a bad date—confirming the breakout and signaling a shift from bearish to bullish. 💔➡️❤️

Now, this is particularly true when the pattern unfolds after a notable slide, as in MSTR’s case. The gap between the troughs and the high is at least 10%, according to the wise sages of technical analysis. In MSTR’s case, it’s a whopping 35%! Talk about a comeback! 💪

The chart reveals a double bottom in MSTR at around $230 since late February, with the neckline resistance identified by the early March recovery to $320.94. A price move through that resistance would confirm the double-bottom breakout and signal a renewed bull run. Technical analysts typically add the gap between troughs and the neckline to the breakout point to derive the potential upside move, which, in this case, means a rally to $410. 🤑

The share price has also broken through the downtrend line, characterizing the meltdown from the November high of $543. It’s like watching a soap opera unfold, with all the drama and suspense!

The evolving double bottom on the MSTR price chart looks like a mirror image of BTC’s double top. That pattern from early this year warned of a price sell-off to $75,000. Oh, the irony! 😅

BTC’s double top breakdown occurred on Feb. 24, with prices plummeting below $91,000, suggesting a bearish trend reversal. The decline gathered pace in the following days, with prices sliding to as low as $76,800 last week. Wall Street’s tech-heavy index, Nasdaq, also saw a similar breakdown early this month. It’s a veritable rollercoaster ride! 🎢

Double bottoms and double tops both have low failure rates, according to the esteemed CMT books, meaning breakouts and breakdowns usually lead to extended price rallies or sell-offs. It’s like a game of musical chairs, but with more money involved!

MicroStrategy is the world’s largest publicly listed bitcoin holder, boasting a coin stash of 499,096 BTC ($41.5 billion). Now that’s a hefty wallet! 💼

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2025-03-18 13:02